The Mines and Metals Engineering (MME) was established in 1996 in
Düsseldorf, Germany, with an aim of using and transferring the know-how of
the latest technologies of the world, in particular the European countries,
to the mines and mining industries of the country. The MME is the most
significant and influential subsidiary of the ASCOTEC Holdings affiliated to
the Iranian Mines and Mining Industries Development and Renovation
Organization (IMIDRO) and is the only engineering company in the field of
mines and mining industries that has been registered abroad and has a record
of nearly two decades in the above-mentioned fields.

The activities of the company are focused on projects in the form of EPC and
it currently is the contractor of the EP in five provincial steel projects.

It should be noted that due to the significant success of the PERED plan (a
“Direct Reduction Technology” invented and patented by MME in 2007) in
one-million-ton capacity, the company is preparing infrastructures for the
start of the mega module and super mega module engineering.

Could you please elaborate on the ongoing projects?

As it was mentioned before, MME is present in five provincial steel projects
as the contractor in the engineering and supply section. The company’s
projects in the field of direct reduction projects include Shadegan Steel,
Mianeh Steel, Baft Steel, Neyriz and Sepid Dasht Steel.

Meanwhile, due to the significant achievements of PERED in the reduction
units operational in Shadegan, Mianeh and Neyriz, and in the year of support
for the Iranian commodities by the minister of industry, mine and trade, the
Iranian PERED plan has been introduced as a substitute for the US MIDREX
plan and at present projects such as Baft, Qorveh and Bijar (Kurdestan
Steel) have been entrusted to the company and engineering of the mentioned
projects has been launched.

Currently, the Shadegan, Mianeh and Neyriz projects have been put into
operation in the past 15, 12 and 7 months respectively, and are producing at
the maximum capacity. The Baft reduction plan is in progress with up to 90%
and in accordance with the planning made with the contractor and the
employer, it will reach the production stage in the month of Bahman 1397
(January/February 2019).

Also, the MME has a 300,000-ton direct reduction project in Shanxi, China,
of which the engineering and parts of supply have been completely
accomplished.

It should be noted that all the above-mentioned direct reduction projects
are under operation in accordance with the unique innovative approach of the
company which is called PERED (Persian Direct Reduction).

In the field of steelmaking, our current projects include Sepid Dasht Steel
and South Kaveh Steel Co.

The first phase of South Kaveh Steel project, with a capacity of 1.2 million
tons of ingots per year, 1.2 TPY commissioned and delivered to client. Its
second phase, with a similar capacity and 50% progress, is underway. At SKS
Company, we are responsible for engineering and supervision.

In addition to the above mentioned designs, the MME had three revamping
projects at Khouzestan Steel Company, which have been temporarily delivered
and are in the final stage of delivery.

The largest project of the MME in Khouzestan Steel Company has been
increasing the capacity of module 2 of the reduction of the company from
550,000 tons of sponge iron to 800,000 tons per year.

This project was put at the disposal of our company in the form of EPC, and
with major changes in the furnace, reformer, heat recovery and blowers, we
were capable of successfully increasing the capacity of the unit from 75
tons of sponge iron per hour to 104 tons, by observing the standards and
meeting the criteria of the project.

Also, the project to increase the production capacity of furnaces I and II
of Khouzestan Steel Company (under Lance Moore project) by injecting oxygen
with supersonic velocity into the furnace, is under implementation.

In this project, in addition to the injection of oxygen, injection of lime
to produce foaming slag and coke injection to create exothermic reaction
with an aim of reducing the power consumption of the furnace have been
implemented and with the implementation of these projects, power on time of
the furnace has been reduced by 11 minutes.

Another MME project in Khouzestan Steel Company has been implementation of
the automation of slab and bloom casting lines, which has been carried out
successfully and is in the final stage of delivery.

What are the priorities and goals of MME for the present projects and future
activities of the company?

The main priority of our company is the successful implementation of the
remaining and ongoing projects, including the Baft Steel plan. With regard
to the successful implementation of the one-million-ton PERED plan in
provinces, the company is preparing itself for the start of the mega module
and super mega module engineering.

Along with the implementation of the ongoing projects, paying attention to
the market development with the priority of being present in all parts of
the steel production cycle, from the concentrate and pellet lines to the
casting and production of special steel products are on the agenda.

Also, with regard to the need of the steel companies of the country for the
issue of optimization of production lines and reduction of consumption,
especially water, electricity and gas, MME has formulated reforming
proposals in the mentioned fields which will be put at the disposal of the
owners of the steel industry.

In the next step, we consider involvement in other mineral industries such
as aluminum, copper, lead and zinc, etc. and in this regard measures have
been taken and we are determined to play our role as an engineering company
through consultation and using potentials of other collaborative and
qualified companies as joint venture in these industries.

What is MME's strategy during the sanction?

Due to international conditions, this company is relying on the technical
knowledge of domestic specialists and experts do the best to improve and
upgrade PERED technology on commissioned& under construction sites.

Of course designing of Mega modules & super mega modules in one of the top
target of MME at present time MME had got one million Tons license inside
the country.

Obviously, with the launch at successful commissioned PERED plants it is
expected other steel making plants help us to upgrade and registering of
super mega modules of PERED.

The company intends to support its domestic manufacturing companies for main
equipment of DRI plants and during the sanction, there in less dependence on
external equipments.